. Calculating IRR [LO5] A fi rm evaluates all of its projects by applying the IRR rule. If the required return is 16 percent, should the fi rm accept the following project? Year Cash Flow 0 1 2 3 $34,000 16,000 18,000 15,000

8. Calculating NPV [LO1] For the cash fl ows in the previous problem, suppose the fi rm uses the NPV decision rule. At a required return of 11 percent, should the fi rm accept this project? What if the required return was 30 percent?

Answer the question 8